Ephemeral Economics
To prevent centralisation of wealth and stake, blockmesh networks employ a concept known as 'ephemeral economics'. Such a network is built upon the idea that an active economy is more valuable to everyone involved than an inactive one. Hence, instead of earning interest on accumulated wealth (as in a fiat economy) you earn interest on your transactions, in the form of increased money flow. An ephemeral economy devalues tradeable currency that is not traded within a certain time, thereby disincentivizing wealth-hoarding. Cryptographically-secured nanoeconomies are even able to add contextual smart-contracts onto these currencies such that the the value of the currency will adjust on the basis of '''how '''its used - e.g. tokens given to nodes belonging to refugees are tripled in value (upon verification and audit of their refugee status). For example, an ephemeral economic network consisting of 100 nodes may each receive 10 tokens to spend per day. Members of the network are able to offer services and goods to one another to incentivize spending on the network. Users who spend more of their tokens consistently are considered to be contributing more to the network and are given bonuses the next day, perhaps receiving 11 tokens instead of 10. This helps cover the additional mining costs that heavy users are forced to pay in order to verify all of their transactions cryptographically. "Miners" of a block-mesh may offer to validate a transaction for a percentage fee of the volume. A miner is required to prove that each transactor's net input-output balance is consistent for each period. The lifetime of each token on such a network can range from extremely ephemeral (value that must be spent every cycle to continue growing) to moderately static (value that fluctuates in value with time, like commodity values have through history) The most stable ephemeral economies tend to use multiple "token lifetimes" which can change contextually on the basis of how they're used. These contextual tokens or "magic tokens" can be encoded with laws to change their stated value on the basis of how they are used. For example a transfer of 5 tokens of ephemeral currency 5ε might become 4.5ε upon being traded for fiat currency. In this way, a currency can disincentize selling their currency and hence remove the incentive to continually destabilize it for short-term profits. (Tracking which transactions are sales is of course a harder task, but if the fiat exchanges within the blockmesh are crypto-regulated then this is trivial to administer). Ephemeral nanoeconomics see Ephemeral nanoeconomy Contextual nanoeconomics No economic models so far have been proven to reach the Nash equilibrium as proposed, but some of the most advanced attempts have focussed on developing models in which the value of a currency is devalued only in proportion to the 'missed opportunities' for it to be shared. Such models tend to allocate different 'ephemeral inflows' to each node in the network as a sort of 'instantaneous income' (e.g. in a nanoeconomy with a 10 minute economic period, node 1 might earn 9.21 units per period, while node 2 might only earn 3.23 in the same period). Nodes which are deemed to be spending their inflow in the most 'connective' ways are granted increased inflows as a way to incentivize sharing of income as opposed to accrual of wealth. Quantum Ephemeral Economics (see also Kolmogorov Complexity#Quantum Ephemeral Economics) Forget the idea of a blockchain as a permanent ledger of transactions, all ledgers are imperfect. Accept uncertainty. Fully ephemeral economics does not require 100% verification of inputs and outputs, the nanoeconomy simply needs to maintain equilibrium on the whole. Hence, not only can future transactions have uncertainty (a flaw common to any economy) but an ephemeral economy is able to allow time-symmetry in allowing for uncertainty in past transactions also. Cryptocurrencies likes Bitcoin are incapable of providing a real alternative to Capitalism because they reward centralisation of mining power and currency stake in the same ways that Capitalism does, despite their presumed goals of Decentralisation. In such an economy, the problem of trading becomes much more open: Rather than asking "Who will trade me X of Y-coin for Q of Z-coin?" One simply asks "Can anyone guarantee me X of Y-coin, given a budget of Q of Z-coin?" We implicitly move from a P2P trading system to a cloud-trading network, in which many micro-transactions can add together to produce the desired results. Category:Nanoeconomics Category:Economics Category:Money Category:Cryptocurrency Category:Finance Category:Information Age Category:Socialism Category:Decentralisation